YM & XM continue to operate around.....>

AUSSIE BONDS: YM & XM continue to operate around the middle of their respective

SFE ranges after the leg lower around the positive Chinese cash equity open was

reversed, YM trades 3.0 ticks lower, while XM sits 3.5 ticks lower ahead of the

close. YM/XM last 52.00, while the cash 3-/10-Year yield differential trades at

49.3bp. The AU/U.S. 10-Year yield spread trades at -43.3bp.

- Space shrugged off a modest downward revision to China's 2017 GDP growth ahead

of the 2018 print on Monday.

- Bill strip trades steeper, with most of the contracts off of lows, 1-5 ticks

lower across the whites and reds. Decent enough activity noted in the IB space

after yesterday's large buyer of IBG9 at 98.515, with 98.510 trading today.

- The Bill curve trades steeper, 1-5 ticks lower across the whites and reds.

Today's RBA repo ops saw A$1.745bn worth of 35-Day ops dealt at 2.116%, with the

creep higher continuing.

- Focus moves to the AU labour market report on Thursday, as well as the

aforementioned Chinese GDP print, due Monday.